How Does the Border Affect Productivity?
Evidence from American and Canadian Manufacturing Industries
Robert J. Vigfusson
2003-788 (December 2003, latest version January 2006)

Abstract:&nbsp
This study reports on how much productivity fluctuations are industry specific versus country specific. For the manufacturing industries in Canada and the United States, the correlation between cross-border pairings of the same industry are found to be more often highly correlated than previously thought. Furthermore, the study confirms earlier findings that the similarity of input use can help describe the comovement of productivity fluctuations across industries.